NR Accounts FAQs

1. Who is a Non-Resident Indian (NRI)?

Non-Resident Indian (NRI) means a n Indian citizen who is ' resident outside India' or a
foreign passport holder who is a 'person of Indian origin'.

2. Who is a 'person resident outside India'?

A person who resides outside India for a minimum period of more than 182 days in a
financial year.

3. Who is a 'person of Indian origin'?

'Person of Indian Origin' means a citizen of a Foreign Country (other than Bangladesh or
Pakistan) who satisfies any of the following conditions:

a) He at any time held Indian passport

b) He or either of his parents or any of his grandparents was a citizen of India by virtue of the
Constitution of India or the Citizenship Act, 1955
c) The person is a spouse of an Indian citizen or a person referred to in sub-clause (a) or (b).

4. What are the different types of accounts that an NRI can open in India?
a) NRE Account
b) NRO Account

5. Can an NRI open joint accounts with one or more NRIs?

Yes. NRI can open joint account with one or more NRIs.

6. Can an NRI open joint accounts with residents?

Yes NRIs can open Joint Account with Resident Close relatives subject to the following
conditions:

a) the mode of operation as Former or Survivor only in NRE / NRO accounts.

b) NRI will be the primary/first account holder in the joint account and Resident Indian will
be the second applicant for NRE / NRO accounts

7. Can an NRE / NRO account be opened with Nil IP?

Ans.: Yes, Nil IP approvals to be obtained from respective Regional Head

8. Can an NRI deposit local funds into NRE account?

No. Only credits coming from abroad by way of inward remittance from foreign banks or
Exchange Companies or transfer from other NRE accounts can be deposited in NRE a/c. Local
money has to be credited to NRO account of an NRI.

9. What is an NRO account?

A Non-Resident Ordinary (NRO) Account is an account s that helps (NRIs) to manage their
income earned in India such as dividends, pension, rent, etc.
 10. What are the differences between NRE account & NRO account?

Basis NRE Account NRO Account

An account that helps NRIs to park their An Account that helps NRIs to park their
Purpose
foreign earnings in India, in INR earnings generated in India in INR
Interest earned on the balances held in NRE TDS is applicable on the Interest earned in
Taxation
Account are 100% tax free NRO account @ 31.2 %
Money from NRE accounts is freely Funds from the NRO Accounts can be
repatriable i.e. both the principal amount repatriated post payment of applicable
Repatriation
and interest earned are freely and taxes with a limit of USD 1 million in a
completely transferable. financial year.

11. What are the permissible credits to NRO account?

a) Remittance from a foreign country

b) Transfer from other NRE & NRO Accounts

c) Transfer from Resident Accounts

d) Any current Income generated in India which may be in the form of Rent, pension,
dividends, etc. or sale proceeds of any property or shares .

e) Cash deposits to NRO accounts are permitted only with submission of documentary
evidence supporting the source of funds.

f) Proceeds of any Loans taken in India.

12. What are the permissible debits from NRO account?

a) All Local Payments
b) Transfer to other NRO Accounts
c) Transfer to Resident Accounts
d) Transfer to NRE Accounts to the limit of 1 million USD per financial Year (Subject to
submission of 15 CA & CB submission).

13. How to reduce the burden of tax on NRO account?

NRI Customers can avail of DTAA (Double Taxation Avoidance Agreement) benefits on their NRO
accounts thereby lowering the TDS on their interest earned. (Valid Tax Residency Certificate
(TRC) for the current year & Form 10F need to be submitted every financial year).

14. What is Double Taxation Avoidance Agreement (DTAA)

For NRIs who are working in other countries, the Double Taxation Avoidance Agreement
helps to avoid paying double taxes on income earned in both their country of residence and
India. A total of 85 countries currently has DTAA agreements with India. By availing the
DTAA benefits NRO taxation can be lowered to a range between 10 % to 15% depending on
the country of residence.
15. Can an NRI maintain multiple accounts with different banks in India, simultaneously?
Yes, there is no prohibition to open and maintain multiple accounts a/cs.

16. What is the tenure for the various NRI deposits?

Tenure NRE NRO

Minimum 1 year 7 Days
Maximum 10 Years 10 Years

17. How much foreign currency (FC) can an NRI bring along with him on his/ her visit to India,
without custom declaration form (CDF) ?
Ans.: Equivalent to USD 5000.

18. If the NRE deposits are withdrawn before the maturity date, what will be the loss?
Minimum 1 year to be completed for providing interest on NRE FD. Only the principal
amount will be paid back in the case of pre-closure of FDs prior to completion of one year. If
the FD completed one year, interest for the run period minus pre-closure penalty (currently
1%) will be credited

19. Is nomination permitted in NRI a/cs?

Yes, NRIs can nominate either a resident or a non-resident Indian as Nominee. Nominee can
also be a minor in which case, guardian has to be appointed to receive payment on minor's
behalf.

20. Can NRE /NRO account be opened for minors?

NRE /NRO account can be opened for minors under the guardianship of NRI parent.

21. What are the additional Documents required for Minor Account opening?

a) Minor Passport and valid Visa Copies

b) Minor Photograph
c) Photocopy of guardian’s passport and visa
d) Address proof and
e) Guardian’s Photograph

22. What happens to accounts of the NRI on his/her return to India?

A returning Indian's NRE /NRO accounts will be designated as Resident account.
23. What are the documents to be collected for NRE / NRO account opening?
Below listed are the documents required for opening an NRE Account / NRO Account.

• Copy of Valid Passport – (Pages with Name, Address, Date of Birth, Date & Place of Issue,
Expiry Date, Photograph, Address & Signature & Observation page if any.)
• Proof of NRI Status by way of Valid Employment / Residence Visa Copy or Work / Residence
Permit.
• Self-attested copy of TIN or functional equivalent of TIN as applicable in the country of your
residence.
• Overseas Address declaration & Indian Address proof.
• Copy of PAN Card or Form 60.
• Recent Passport Size Colour Photograph.

24. What are the additional documents to be collected in the cases of Seafarers / Mariners?
a) Copy of CDC (Continuous Discharge Certificate)
b) Appointment letter (Required only for seafarers going on new employment)
c) For contract employees on continued employment, last work contract and letter confirming
next date of joining vessel (or) current work contract.

25. Initial Payment in the case of NRO account.

Initial payment for NRO account can be in the form of Self Cheque from NRE / NRO account
or as cash. Initial payment up to Rs.10000/- can be accepted as cash with customer
declaration on source of funds

26. Can Resident Savings account can be opened in the joint mode with NRI close relatives as
the second applicant.
Resident Savings account can be opened in the joint mode with NRI close relatives as the
second applicant. The mode of operation in such accounts will be “Either or Survivor” basis
subject to following RBI guidelines.
a) Such account will be treated as resident bank account for all purposes and all regulations
applicable to a resident bank account shall be applicable.
b) Cheques, instruments, remittances, cash, card or any other proceeds belonging to the
NRI close relative shall not be eligible for credit to this account.
c) The NRI close relative shall operate such account only for and on behalf of
the resident for domestic payment and not for creating any beneficial interest for
himself.
27. What is the status proof that can be collected in the case of Foreign Passport holders?
Any one of the following documents can be obtained as status proof in case of Foreign
Passport Holders:

a) OCI Card
b) Passport of Father (Foreign National whose father is an Indian Citizen)
c) Cancelled /Expired Indian Passport.
d) Indian Passport of Spouse. (In the case of Foreign national married to Indian)

28. What type of account can be opened for Foreign Nationals staying in India?

For Foreign Nationals staying in India for more than 182 days, only Resident SB can be opened.
 29. What type of account can be opened by foreign tourists during their short visit in
India?
Foreign tourists during their short visit to India can open a Non-Resident (Ordinary)
Rupee (NRO) account. Such account can be held up to a maximum period of 6
months only.

30. What are the documents that can be collected as Permanent address proof in the case of
Indian Passport holders?
In the case of Indian Passport holders passport / Driving License / Aadhaar / Voter’s ID can be
obtained as permanent address proof.

31. What are the documents that can be collected as Permanent address proof in the case of
Foreign Passport holders?
Documents issued by the Government departments of foreign jurisdictions (like OCI/PIO Card,
Work/Resident Permit, Social Security Card, Green Card) etc. / Utility Bills / Tax Receipts

32. Can E-Visa be accepted as status proof?

As most of countries are now issuing only e-visa / Mobile visa, Branch Head need to verify the
original on customer mobile app and should confirm the original is verified

33. Can NRE account be opened for students going abroad for studies?
NRE account can be opened by student going abroad for studies with Valid student visa having
stay validity of more than 182 days and the admission letter issued by the foreign Institution.

34. Is TIN / Functional Equivalent a mandatory Requirement for NR account opening?

Yes, TIN / FE is a mandatory requirement for NR account opening. For First time
Travelers to overseas countries, approval to be taken from Product Head for opening account
without TIN and this can be updated within 3 months post account opening.

35. Can NR account be processed with Visa expiring within one month?
If the visa / resident ID is expiring within 1 month, deferral approval from BBH to be obtained.

36. Can Indian address be updated as communication address in NRE/ NRO accounts.
Communication address should be overseas address except for mariners and OCI/ PIO holders.

37. Are the NRE Savings Account funds repatriable?

Yes, the both the principal and the interest earned in NRE Savings are repatriable.
38. What is the Repatriation limit in the case of NRO accounts?

Funds are not freely repatriable from an NRO account, unlike an NRE/FCNR account.
Repatriation from NRO account is possible only after payment of applicable taxes.
Income earned from sources such as rent, salary, dividend, pension, and earnings of the sale of
immovable property (Land, house) is repatriable up to USD 1 million in a financial year.